Tennessee has become the second state to ban the use of convertible virtual currency kiosks – also known as “crypto ATMs” – amid concerns about their use in facilitating scams.
According to the Tennessean, Gov. Bill Lee last month signed into law legislation that prohibits businesses and individuals from installing or operating CVC kiosks. Violating the ban is a Class A misdemeanor under Tennessee law, meaning it is punishable by a maximum of nearly a year in prison and a $2,500 fine.
The FBI’s Internet Crime Complaint Center received more than 10,956 complaints involving CVC kiosks in 2024, with reported victim losses of approximately $246.7 million. As a result, at least 29 states have adopted new laws to restrict CVC kiosk activity, according to AARP.
Earlier this year, Indiana became the first state to ban the machines entirely. That state had nearly 900 CVC kiosks in operation when the ban was signed into law.
